Electronic cash ledger under GST explained

How money gets in

You create a challan in Form PMT-06 on the portal, choosing the tax head (CGST, SGST or UTGST, IGST, cess) and minor head (tax, interest, penalty, fee, others). Payment can be made by net banking, card and similar online modes, NEFT or RTGS, or over the counter at an authorised bank within the permitted limit. A generated challan is valid for 15 days. Once the bank confirms payment with a CIN, the amount appears in the ledger. TCS and TDS credits from others also land here.

What it can pay

• Any GST liability, including interest, penalty, late fee and demands.
• Tax under reverse charge, which must be paid in cash and not through input tax credit.
• The cash portion under Rule 86B for taxpayers it applies to.
• Pre-deposit for appeals and amounts under DRC-03.

Wrong head and refunds

If you deposit under the wrong head, for example CGST instead of IGST, use Form PMT-09 to transfer the balance between major or minor heads within the same GSTIN. Any excess balance can be refunded through RFD-01. Remember that a balance sitting in the cash ledger is not a payment of liability until it is set off through a return or a payment form.

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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.